bacon productt. just want to give a shout out to a friend of mine. he has an idea of a bacon necklace. so when you ride your bike, you can't eat bacon as you are writing your bike. cheryl: the baker comes on the market now today. bacon everything. melissa: someone bought me that for holidays one year. it is pretty fantastic. [ laughter ] it was pretty fantastic, i have to tell you. lori: i was impressed that it was kosher. melissa: i am melissa francis. lori: i am lori rothman. republicans pitching their plan to stop the fiscal cliff. the president says no deal

without raising taxes on the rich. melissa: the nations largest seaport complex at a near standstill for the eighth straight day. drake christopher is going to join us with how this could impact your holiday season. lori: i was just kidding, actually. bacon is kosher. i do not eat kosher. melissa: speaking of kosher -- lori: rubbing elbows with the royals. our next ambassador -- you are speechless. melissa: i do not know about that one. time for stocks now as we do every 15 minutes. nicole petallides is standing by. nicole: right now, we are seeing the dow jones industrial average down just 12 points. so far, we are having a losing week on wall street.

let's see what happens at the end of the day. these moves are really fractional. the s&p down a third of a percent. december, traditionally, is the best month for the s&p 500 since 1950. we will see whether or not that seems to come to correlation. i want to take a look at some of the auto retailers. it turns out they are not doing so well with their sales. pat boys, in particular, revenue missing for the third time in a row. both companies not seeing sales. warmer weather plays a role. back to you. melissa: thank you so much. lori: republicans presenting a plan to avoid the fiscal cliff. first and foremost, avoiding

increasing and eliminating deductions on of her earnings to raise an additional $8 billion. $1.2 trillion in new spending cuts. the white house, no surprise, already rejecting the plan. the president saying the gop plan is out of bounds because it does not include higher taxes on the wealthy. we are joined now by a chief economist. why does it seem the only solution to be satisfied with is to raise taxes on the wealthy? >> they clearly staked out this position during the campaign. they feel they have a mandate for it. i am sort of skeptical. the sticking point is the tax rate question on the wealthy. however, with that said, progress has been made in the sense that the republicans are not willing to raise taxes, not rates, on the rich.

democrats are saying they are more open to entitlement cuts, if you will, reform, whatever you want to call it. they are making progress. [talking over each other] the question is: you know, how far are both sides willing to go down to the wire to avoid this. whether it is the democrats or the republicans. i think we will go down to the wire. the president himself just that he is doubtful we will get a deal within the next two weeks. during the last three years, we have had these 11 hhurs deals. should we really just wait off new year's eve celebrations here before we get a deal and do you think it will really come down to that?

>> these guys all want to go home. they want to have christmas. they want to have new years without this hanging over their heads. i suspect by christmas time, we will have a deal. lori: no reaction at all. no sense of urgency. no fear. is that a problem for clock is at giving lawmakers a path? >> it could be accept all they have to do is go back to the summer of 2011 i think complacency will not set in too much. they are expected to figure this out. lori: i was speaking with martin felton yesterday of harvard, the u.s. economy is still in serrous danger of falling into a

recession. >> i think the fiscal cliff is the single biggest risk. if we avoid that, i think we have a good shot of growing. not rapidly, but between one and 2%. housing is recovering. i think without the fiscal cliff, we will do all right. lori: tax rates or than likely are going up, at least for one class. you have this slow growth. at the same time, think of the federal reserve keeping rates low for so long. we could be in serious trouble. >> on the inflation front, we are not very worried for the next year or two. it is out there, but not the next year or two. they will phase in whatever tax increase they put in. it will not hit next year. it will phase in over a couple years. that is the smart way to do it. lori: thank you for your time. >> thank you.

you bet. melissa: i would like to be optimistic. date -- details of the probe have not been released. over 80 people have already been questioned about the more than $5 billion in trading losses last day. peter barnes has the exquisite details right now. peter: we first learned about this probe in september through news media reports. the number of people questioned suggest that the scope of this thing is broad and could lead to more political problems in washington for jpmorgan chase. the probe covers $5.8 billion in losses. it is caused by the london whale, a trader that got a reputation for big bats with complex financial investments. the wide net that the subcommittee appears to be casting will not necessarily lead to any formal charges against the bank, any formal

hearings on the trading losses or any scathing reports. senator carl levin, the chairman of this subcommittee, criticized the bank in may when it announced this law saying it "made a very big and complicated that that now has gone very wrong." he is now one of the sentence leading critics of wall street. they did not comment on our story today. if a probe generates any substantive results, that could mean war headaches for ceo jamie dimon. it has been investigated whether -- that issue as well as the bank's internal controls oversight of traders and other matters could be among the subjects of the subcommittee's probe. melissa: peter barnes, thank you so much. lori: breaking news out of

egypt. thousands of protesters ready to march on the palace to protest president morsy. melissa: let's see how the energy market is reacting to this. let's look at gold and silver and copper as we head out to break. crude is trading down. almost a full percentage point. we will be right back. ♪

♪ lori: most popular segment, at least this hour. what you need to know to make some cash. recent comments that were made on the president's health care plan. charles: this is much broader than darden. social and economic change on businesses. with the white house and the help of the media, it is doing a great job. not just on social issues, even on things like obamacare. darden reported their numbers today. you can see they are bad. even all of garden was down. melissa: a huge hit on the stock. charles: in light of the changes, precautions for sales

and earnings for the full year. our outlook also reflects the potential impact, though, difficult to measure, focusing on darden google fulfillment and how we may accommodate healthcare reform. we will have a 5% surcharge because of obamacare or we will build or people from full-time to part-time: the public outrage is amazing. denny's, papa john's and applebee's all immediately said healthcare will kill us. their brand index plunged. when i say plunged, it plunged. businesses better wake up to be careful about this. melissa: what do they do for about it?uld they just not talk do you think people really don't go in and eat at applebee's because they said something negative quirks back. charles: we are looking at this darden chart right now.

the pickings are very slim. certainly, it was important enough. one of the few black fortune 500 companies out there. he has to make these movements3 of the economic survival and the bottom line. the greater picture out there is that there should be a limit to what companies can make and beyond that it is a notion of greed. if you go past that limit, we will not support you. this is just the very beginning. it will be serious. lori: more evidence to add to the discussion of how big of a role government should be flying and businesses. charles: it is the arbitrary of what is greed. what is enough? they have a say in it and it will get louder and louder and louder.

melissa: what is greed for clock what is enough? insane. as we do every 15 minutes, let's check the markets. nicole petallides. nicole: we will focus on one that has gained in popularity. we have watched gold, the commodity itself, pulling back recently. it is down over $26 at 60.93. you have seen, lately, a net of $1.6 billion added into the etf since early october. one of the experts remained bullish on gold. just noting that this pullback is actually being blamed on the fiscal cliff walls. money coming off the table.

and a lot of folks are pretty bullish going forward. back to you. melissa: thank you. a strikeout the nations busiest port complex. costing the nation a billion dollars a day. the port of long beach director joins us just ahead. lori: let's see how the dollar is trading. it is a weaker dollar with big euro pushing up to 130. the dollar weaker, really, across the board. we will be back with more after this. ♪ twins. i didn't see them coming. i hai need to rethink the oblco of my portfolio.atio. what i reallneed is sleep. introducing the ishares core, buildi blocks for the hearof your portfoli find out why 9 out of 10 large professional investors chse ishares for their etfs.

ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. he's going to apply testosterone to his underarm. axiron, e only underarm treatment for low t, can restore testosterone levels back to normal in most men. axiron is nofor use in women or anyone younger than 18. axiron can transfeto others throughireccontact. women, especially those who are or who may become pregnant, anchildren should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or ineased acne in women may occur. report these signs and symptoms to your doctor if they occur. tell your doctor about all medical conditions and medications. do not use if you have prostate or breast cancer. serious side effects could include incread risk of prostate cancer; worsening prostate symptoms; decreased sperm cot; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness

or irritation where applied, increase red blood cell cnt, headache, diarrhea, vomiting, and increase in psa. see your doctor, and for a 30-day free trial, go to axiron.com.

and waiting in line. i don't have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stampcom, u n print real u.s. postage for all your letters and packages. it gives you thexact amount ofostage you need can you print only stas? no.

first class. priority mail. certified. international. and the mailman picks it up. i don't leave the shop anymore. [ male announcer ] get a 4-week trial plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again. >> 21 minutes past the hour. i have your fox news minute. crisis escalating and egypt as protesters their breakthrough a police line. now sources are selling reuters that president morsy has left the palace. here is a live look at some of the chaos taking place there. an estimated 50,000 demonstrators angry with that rush constitution. new video calling from missouri.

the bridge which carries interstate 70 across the missouri river is now no more. 165,000 vehicles across that span which is located between st. louis county and st. charles county. 2012 was the best year ever for broadway. $1.1 billion in box office sales. the broadway league says that word-of-mouth continues to be the greatest in influence for show selection. those are your headlines. back to lori and melissa. melissa: heather, thank you so much. it is so interesting, word of mouth is the best. lori: people are paying big bucks to see broadway shows. melissa: the upper hand over arch rival petco in the struggle to take over knight capital.

charlie: they are basically professing and inevitability about their bed which is three dollars, $3.20. virtu is in talks. virtu are telling clients that just about everyone they know on in the marketplace right now, that they had made a verbal agreement to be part of this deal. they agree to add at least $200 million as part of the deal. now their bid is three-320. it is something. having the premature of a pig private equity like service. service is one of the biggest in

the world. it gives you your big cash in. knight capital has been telling both getco and virtu to go out there and raise money. put together financing. virtu has a chunk of it from service. virtu executive are on kind of day, it is sort of an interesting thing, they are talking up their bed in ways i do not see a lot. they are out there telling investors that getco has lousy management. they are saying investors prefer our. you still think you have kind of a weak hand. melissa: i want to interact with you. i love you, i want to talk with you. rich: you can appreciate it more when i am done. why is the overconfident?

this is what i am supposed to do. melissa: i want to interact with you. lori: and i just say i have not said a word. charlie: it is funny and annoying at the same time. [ laughter ] now i know what they go through. getco and it advisory, jefferies . getco was help in filling out. they are up against a pretty formidable player. take it for what it is worth. virtu is out there saying it is pretty much a done deal. lori: is there a deadline for best and final offer? charlie: i think getco is pushing for one. the bottom line is they will take their sweet time and see who has the better deal.

cfa of their beds. the only issue i would say is this, if they did not sell -- right on the money, by the way. if you pull those periods, it would be down to 250. that opens up that joyce and the board to tremendous liability from shareholders. there you go. it looks like it will be sold. melissa: you know i love you and i am trying to interact with you and talk to you about what you have to pay. i appreciate your reporting. charlie: i did not take it too personally. i do this for a living.

melissa: i know, me too. charlie: icon on air and report for a living. let me spit it out. [talking over each other] charlie: the only thing is there is a lot like said, it is not that big of a deal. this is good tv. i would say it is not that big of a deal. one thing is, there is a degree. i have to get out of my mouth for the viewer. melissa: charlie gasparino. see you tomorrow. are you satisfied? charlie: i am fine. i feel sorry for your husband. [ laughter ] melissa: capturing a missing drone and a warning from ssria on chemical weapons. a lot going on.

we will have the latest unsettling news from the middle east. that is what is coming up next. lori: and how it influences the markets. take a look at some of the winners and losers on the s&p 500. we will have more for you on the other side of the break. ♪ [ male announcer ] where do u turn for legal matters?

at legalzoom, we've created a better place to handle your legal needs. maybe you have questions about incorporating a business you'd like to start. or questions bout protecting your family with a will or living trust. and you'd like to find the right attorney to help guide you along, answer any questions and offer advice. with an "a" rating from the better business bureau legalzoom helps you get personalized and affordable legal protection. in most ates, a legal plan attorney is avaible with every personalized docunt to answer any questions. get started at legalzo.com today. and now you're protected.

co-. lori: stocks are a little changed on this tuesday trading ssssion. it is back to the floor of the new york stock exchange. nicole petallides, you know, we've got the fiscal cliff

negotiations and big jobs numbers due out toward the end of the week, nicole. i wonder if investors are in kind of a wait and see mode here? >> absolutely. the jobs number is at the end of the week, right? is arguably the most important economic indicator. a lot of folks are very concerned about the economy with very moderate growth that we've seen at best. unemployment still remains really very high and so that is something that still sits on the minds of investors. i wanted to also talk about the fiscal cliff and how a lot of companies are speeding up those dividend payouts like oracle and carnival cruise and weight watchers and ethan allen just to name a few. it is easily over 110 companies have done just exactly that, accelerated the dividend payouts to be at the end of the december rather than early january. in which case you might be more susceptible to higher tax rate. these are some of the names. coach. diner shoe warehouse and

larry ellison with his company. oracle's ellison has about $200 million in the payout although he was in the involved in the decision to do so. lori: thank you, nicole. melissa: we have live pictures coming in from egypt. thousands of people gathering in tahrir square in cairo to oppose egyptian president morsi's new constitution. some were able to push past police lines. walid phares is here to talk about this situation. huy serious is it getting for president morsi? >> it is getting serious for president morsi day after day. the morsi people will try to organize demonstrations in support of the president. the muslim brotherhood are a very strong organization. what we didn't know or most of us didn't know, the opposition, secular, democratic liberal opposition that started arab

spring two years ago is ready to confront morsi and stop him from transforming egypt into a full islamist state and terrorist regime as well. lori: how could, walid, how could president morsi do this power grab? how could they rush through the draft of constitution considering how relatively no time has passed since the arab spring, barely a year? >> yeah. he thought and his advisors and his group very idealogical thought there would be no civil society opposition what they have beenndoing. they have maneuvered if the brotherhood by cutting a deal with the youth, if you remember two years ago against mubarak. then cutting a deal with the military against the youth and youth against the military. unfortunately must add here the u.s. administration has been playing back and forth with the muslim brotherhood, encouraging them to move forward. that gave them the ultimate push it do what they have been trying to do. melissa: if you look at the situation and everything going on in syria, we're waking up to the fact that

the regime that replaces the current regime if it falls could be even more anti-american than what we're seeing right now. is there a danger of that in egypt? what if president morsi loses control of the country, what would a replacement look like? >> first of all there will be no morsi losing control and leaving. this is not mubarak. he has a very strong party with him. i am very concerned events in egypt will not be a repeat of the mubarak quitting. it may be a major confrontation. i don't want to use the term civil war but many in egypt are using it if no solution are now. some of the salafists, their allies are armed. armed forces of egypt could take a stand. it is very explosive and dangerous situation inside egypt. lori: in syria as well. let's talk a little more about syria and what is going on there we had reports they're moving sarin gas. what will that be used for? is this looking like a war

in itself and really is the whole region on the brink of war? >> it is boiling. what we're witnessing right now is a series of civil wars. one is completely open in syria. as you mentioned there is the issue of chemical weapons. we could talk about that quickly. in libya the militia attacked us in benghazi. you have the unsettled situation in yemen. iran which is building its own weapons system and missile and penetrating iraq. in syria i may say the issue of chemical weapons is the most serious. yes, the regime is moving weapons away from the forces of the rebels but you don't know at what time the regime may use them. you don't know when al qaeda penetrating the rebels may seize some of these rebels. it is a very tense situation in syria. melissa: just so frightening. walid phares. thanks so much for joining us. >> thank you for having me. lori: rising tensions in the middle east, oil under pressure today. fox business contributor phil flynn of price futures

group following all the action from the pits of the cme. why is not oil reacting more to the news out of egypt and for that matter syria, too? >> because the market is more concerned about the weakening demand and fiscal cliff and the fact that is up price are getting better. especially in the part of the world you normally look at when you're looking at the middle east. if you look at the brent crude contract it is leading the wti here in the united states to the downside. why is that? right now we're seeing major production come back online in the north sea which would be pushing more supply onto the market at a time where demand in europe right now is relatively weak. we're seeing that supply cushion. the other thing is the market has been pricing in a lot of worst-case scenarios. obviously doesn't seem to be getting a lot worse than what is happening but definitely it has been priced in to a certain extent, phil flynn, always knowledgeable. price futures group. >> thank you. lori: 'tis the season.

the little town of rudolph, ohio, trying to save christmas. melissa: striking workers in california may turn into thh grinch that stole it. the port of long beach executive director j christopher lytle will join us how this could impact your holidays. ♪ .

>> i'm liz macdonald with your fox business brief. stocks are swinging between gains and losses today as investors continue to focus their attention on washington, d.c. and the fiscal cliff negotiations. u.s. banks posting their best quarterly performance

in six years. according to the fdic, banks posted a combined profit of more than 37 1/2 billion dollars during the third quarter. that is the 6.6% increase from the same time last year. the number of banks on the agency's problem list also fell from 732 to 694. newly-elected massachusetts senator elizabeth warren has been tapped by democrats for a seaton the senate banking committee. warren won her seat campaigning as a populist who would crack down on big banks. this comes two years after she unsuccessfully lobbied to the run for the consumer protection bureau. that is the latest from fox business network, giving you the power to prosper

lori: let's give you an update. i was chuckling because so many people are talking about anna wintour, nomination, to be ambassador

to england. a lot of people gufawing over that. let's talk about the stock market. it is doing absolutely nothing. the reason is investors are holding out, they hope we get a deal on fiscal cliff. they are hopeful the november jobs report coming out at end of the week will be brighter. melissa: there we go negative. lori: stocks swinging between gains and losses today. november jobs report on friday should be the tone seter. the ism report yesterday released was below 50. so it signaled contraction. that was the first time in three months. that was very concerning to investors showing there are a lot of pressures on this economy. melissa: we have breaking news right now that could be good news for the markets and for consumers. just moments ago the los angeles mayor announcing that union and management have agreed to federal mediation, in a bid to end the strike at the ports of los angeles and long beach. that is according to a reuters report. the strike is entering its 8th daa the local clerk

union for them fights for jobs they say are being threatened by technology in the future by the way. the protests are causing a near shutdown of the nation's two busiest ports and nearly one billion dollars a day in economic damage. joining us is christopher lytle, executive director of the port of long beach and give me reaction to the news that we're hearing that the mayor is talking about federal mediation right now? >> i think that is really good news. the obviously, the parties now for a long period of time haven't been able to reach a conclusion, a resolution to the problem. i think the addition of the federal mediator is a very, very wise step. melissa: you are in the man in the middle here. you're sort of the man in charge of the ports as you're watching these two sides battle against each other. on the one side you have the clerks union and it is depending which report you look at, 6 to 800 people who do a lot of clerical work at the ports and they're worried that in the future their jobs will be

outsourced to computers. on the other hand, you have millions of people, small business owners, you know, people that are trying to get their goods and get ready for the holiday season, frustrated by this. i mean, how do you balance everyone in the situation and what are you saying to these parties? >> well, that is exactly right. what we're trying to do, as we simply want to get the problems resolved between the two parties and get everybody back to work. as you correctly say, i mean this strike now has impacted thousands of people out of work. the ripple effect will continue. pach day that the strike continues we'll have massive economic effects all the way back to every, literally every corner of the country. so it is extremely important now to get those parties back to the table, get them talking and get this thing resolved. we have right here in long beach we have another roughly 30 vessels due in. we've got about 25 vessels

sitting out here at anchor right now. it is a very serious issue. melissa: they are sitting there idle. the two ports directly or indirectly support 1.2 million jobs in southern california. 40% of the nation's imported cargo contain, pass through these ports, 40%. so we're talking about, you know, 6 to 800 workers holding up so much commerce going on. i know the longshoremen refused to cross the picket line in solidarity with their fellow union workers but this is a problem in the long run. we're talking about jobs that could potentially be automated. it does seem like a battle that is tough to fight. i mean if it is cheaper toe automate these jobs, what do you say to these workers? >> well i think that's the part that they have to really reconcile at the table. we as the port are a little bit outside of that. we're, we simply want the parties to get that resolution that they need.

and it clearly it is a give and a take. it will require compromise from the union side and it will take a little compromise from the employers. but, simply, this strike can't continue. melissa: yeah. >> or the economic effects of this to the country are massive. melissa: your focus is everybody get back to the table and work this out so we don't cause more economic hardship. thank you for coming on. we appreciate your time. good luck there. >> sure, my pleasure. lori: let's get to our stock market check. it has been 15 minutes since we last heard from nicole on the floor of the stock exchange. big lots having a big day today. what is headlines surrounding that. >> the stock has been moving significantly to the upside but let's start off with the quarterly numbers. the quarterly loss was actually less than the analysts had expected. so that was some good news there. the stock right now has accelerated to the upside. it is up 14%, gaining $3.84 a share. they also raised their full

year numbers. earn expectations are now better than expected. so that always helps things along. last but not least the chairman, ceo, president, plans to resign, retire. he will stay on board until he finds a replacement. once the successor is named then he will step down. back to you. lori: thank you, nicole. a big court ruling that has yahoo! shareholders on the run. billions at stake on appeal. melissa: could vogue's editor-in-chief become the u.s. liaison to france or the u.k.? the new rumbles of anna wintour as ambassador coming up next.

melissa: more breaking news right now. disney and netflix reaching a multiyear catalog deal. netflix will be the exclusive u.s. subscription television service for first-run live action animated disney films. basically that means you have to go to netflix to get first crack at disney stuff and cartoons to is moms of course. you can see netflix's stock reacting. investors loving this news and the stock is rising substantially on that. you can see it is up there about 7%. thank you. that is little dark for me there. lori: good news for content on netflix. more choices. internet giant yahoo! facing trouble south of the border. a potential judgement against it in a mexican court may cost billions. shibani joshi has the details for us.

so the amount of this lawsuit is equivalent of what, like a third of yahoo!'s cash on hand? that is exorbitant. >> it is a huge chunk what a the company has in he bank and this is something investors will pay very close attention to obviously when the company is spending billions of dollars on lawsuits. it is not investing in itself. it is not doing things to create shareholder value. here is what italy's to, $2.7 billion fine. back of the envelope calculation in the last 10-q, that is 35% of the company's cash balance as of the last quarter. this has the potential to really impact the company. what happened to boil it down, a mexican company, kind of like the yellow pages of mexico, a website there, claiming breach of contract, lost profits. that is why the mexican court ruled as it did. it is expected that yahoo! is going to, you know, appeal this case but this is big bucks we're talking about here clearly. lori: investors are

confident about that appeal because the stock is up 1 1/2%. >> there are a couple of reasons investors are sticking around. superstar celebrity, tech celebrity, marisa meyer, fifth ceo in a handful of years. they're willing to give her a shot. the company committed $3.6 billion to buying back stock. it already spent 212 million bucks just since marisa meyer said she would buy back the stock, the stock is up 20%. that is the real catalyst here. if we see the ruling stick i think investors could back out. lori: shibani, many thanks. melissa: the mississippi river losing some of its might as water levels along the river are dropping to near record lows. jeff flock is down by the river with more on this. jeff? >> how low can it go, melissa? this is a river gauge. take a look where it is right now. i was at a flood in this town in phebse, illinois and that was used. look where the river is now?

nowhere near the gauge. marty, run with me. look at this boat. if you can't tell how low this water is, that boat you see out there, that is army corps of engineers right now. they're doing sounding because there are river boulders or what they call river pinnacles. >> rock pinnacles, that's correct. >> they're sticking up and making this un 1/2 dpabl. -- unnavigable. >> when the water goes up the pinnacles are past the bridge. >> this is huge estuary for shipping from diesel to fertilizer, to grain moves up and down this. this is what we're talking about right there, marty? marty is with aep river operations. they run barges up and down here. those are what they called rock pinnacles? >> that's correct. those will extend clear out into the channel past the bridge pier. that is what the corps is trying to get removed. >> they will try to blow those up the next few weeks they hope to keep this thing open. amazing that the mississippi

could be shut down. crazy. melissa: no it is. it is really a huge story people are just waking up to. jeff flock, thanks so much for bringing that to us. we appreciate it. lori: hear is the watercooler of the day. what do you get if your one of president obama's top 10 fund raisers? how does the idea madam ambassador sound? it is idea being floated for vogue editor anna wouldn't ture, could be u.k. where she was born and raised or france. the job could be reward for helping the president raise money during the president's re-election campaign. the fashion maven hosted four events where ticket prices were 10,000 to the $40,000 a pop. that is lot of copies of "vogue.". many times today they say she is fashion editor. so many qualified people who have been diplomats for years. career diplomats. melissa: makes it feel like you buy it. lori: absolutely. absolutely. melissa: coming up tonight on "money", speaking of money, congresswoman sheila jackson-lee joins me to

discuss why republicans are waging a war on working families with their fiscal cliff plan. that is 5:00 p.m. eastern here on fox business. >> as we say good-bye to you this hour a lot more ahead for the trading day with a couple hours to go. the president meeting with governors on what else, the fiscal cliff. did they come into any conclusion? ashley and tracy going inside the meeting with utah governor gary herbert. that's next. [ male announcer ] this is amy. amy likes to invest in the market. she also likes to ride her bike. she knows the potential for making or losi money n pop up anytime. that's why she trades with e leader in mobile trading. so she's always ready to take action, matter how wily... or weird... or wonderfully the market's behaving... which isn't rocket science. it's just common sense. from td ameritrade.

♪ [ engin revs ] ♪ [ me announcer ] oh what funun i to ride. get the mercedes-benz on your wish list at e winter event going on now through december 31st [ santa ] ho, ho, ho! [ male announcer ] lease a 2013 e350 for $57a month at your local mercedes-benz dealer. >> looking at a market up nine points. back and forth here as we wait for the jobs number later this week. maybe settlement on the fiscal cliff. there is no reason to go buy anything. so no one is out there buying. ashley: that's right. we're driftsing a they say. lori: calm before the storm. i love all the overly used

phrases. ashley: we used them all i think. melissa: so we left none for you the next hour. ashley: never fear we'll come up with more, thank you, ladies. we appreciatist. >> good afternoon, i'm tracy byrnes. ashley: i'm ashley webster. another day another meeting. today president obama meeting with governors on the fiscal cliff talks so what is really going on behind the scenes? well, i will tell you what, we'll ask governor gary herbert of utah. he actually met with the president so we'll get a first-hand account. tracy: yeah, that will be interesting. is red tape standing in the way of a housing recovery? will foreclosures bog down in court proceedings? our very own judge napolitano is here to give us the scoop on that. ashley: plus, say it ain't so. the bubbly is losing its physician. the champagne industry suffering from a hangover from europe's economic woes. there hasn't been a lot of celebrating across the pond lately. we'll have more. tracy: i wonder if europe is drinking wine instead?

ashley: they're drinking something. they will never give that up. tracy: they do it in church, heck. all right, top of the hour, time for stocks as we do every 15 minutes. we head down to nicole petallides on the floor of the new york stock exchange. girl, we are, as ashley said, drifting and it is all because of washington, isn't it? >> there is so much going on here. when you take a look at these markett they're actually very telling. shows you investors are a little nervous, a little tepid. the vix, the fear index is to the upside. the dow jones industrials crossing the unchanged line over and over again basically saying which way will we go as they await news from washington, economic report from washington. the dow jones industrial average up 17 points right now. we wait for that all important jobs report. the fiscal cliff as we await for the bipartisan agreement of some sort, right? so these are the things that are really on the table on wall street on december which is traditionally a good month here on wall street. as i took a look at the up volume versus the down volume they are virtually

the same, just a moment ago it changed but 165 million to the upside, 149 lower. so about half the names on the dow are winners. let's take a look at earnings losers. when you look at darden, you talk about olive garden and red lobster, they saw sales pulling back despite promotions. they will have to change the way they do things, saying the quarter was disappointing. pep boys noting the same thing. they're not seeing great sales and numbers. as a result we're seeing both of these names down arrows and down double-digit in percentage terms. ashley, tracy, back to you. tracy: nicole petallides, i have never been to a red lobster. is that weird? add that to the list. no spongebob. no red lobster. ashley: cracker barrel? tracy: no cracker barrel. >> olive garden is good. good salad bar. tracy: i'm not sure many italians actually go to olive garden. >> what country are you living in? is new jersey devoid all these things?

let's move on. president obama meeting with governors on both sides of the aisle as d.c. struggles to get a fiscal cliff deal done in time. definitely the clock is ticking. rich edson joins us from the white house with the very latest with the governors meeting today, rich. >> right. with the governors meeting a number of democrats and republicans emerged from the west wing saying they pressed the president to get a deal done. they say they didn't endorse or reject either of the proposals on the table but still washington continues to muddle through this. the democrats have a proposal on the table. the republicans say it is not serious. republicans have a proposal on the table. democrats say it is not serious. now a new line in the sand from president obama, this from an interview with bloomberg tv a short while ago saying we're going to have to see the rates on the top 2% go up and we're not going to be able to get a deal without it. the president hadn't gone there before. perhaps there was perhaps a wiggle room following thought. still there is no line in the sand how much rates have to go up.

the white house position is that they must go back to clinton rates for top earners. that is nearly 40% on amounts of more than $250,000 a year. republicans have put $800 billion of unspecified tax revenue on the table but they're saying no to a tax rate increase. democrats have said no to that proposal.% in response to that a spokesman for house speaker john boehner saying despite republicans offer to put real revenue on the table the president has offered no concessions whatsoever. when will this willingness to compromise materialize??3 now republicans and democrats say there are no major meetings planned, no summit for democrats and republicans yet to get together and talk on this. the white house says they imagine that there is some e-mail traffic going back and forth but they refuse to tell us when and where they plan on negotiating this. back to you. ashley: i bet the language in the e-mail is pretty interesting too. >> right. ashley: rich edson, thanks so much. tracy: well more companies are accelerating their

dividend payments. so we heard from campbell's soup and coach. some of the latest getting cash to shareholders ahead of fiscal cliff. oracle taking it a step further. moving up three dividend payments before the end of the year. for more on this, we're joined by gary kaltbaum, president of cat obama capital management and fox news contributor. gary, i'm glad you're here. this has to be backfire at some point where companies are taking loans to make different dernds. that can't be good at the end of the day. >> look, capital will flow and move to where it is treated best and when it is treated best and right now is when. i can tell you next year taxes are going up. they're taking advantage of lower taxes this year. somebody like larry ellison is taking out a quarter of a billion dollars and gets to pay less taxes on it. it is a good move. realize with these companies with the fed keeping rates down and bond yields way down they can offer debt at

very low yields, almost the cost of money is zero. so they're okay with what they're doing. i'm seeing yields on 10-year corporates at 1 1/2, 2% for some of these companies. they're happy as can be. tracy: right, that's the thing, right? we have got the if he fed keeping rates so low. who will lock their money up for 10 years at 2%. i don't want to buy the corporate debt. banks don't want to loan it to me because they don't want to lock me in for 30 years on a mortgage. we're all at a stalemate, aren't we? >> the big bubbles in the bond market. the fed is forcing people. they're buying up a ton of bond funds which are buying up the bonds and the distortions in the market, in bonds right now, in yields, are an absolute joke. i think there will be a lot of pain once the bubble is burst. i just don't know when. i think we're probably a couple years off. there will be a point in time where the market doesn't listen or care what bernanke does anymore. tracy: that bubble bursts. prior to that they're

pushing us all into the equity market instead because you have got nowhere to go. there you have earnings and revenues both really kind of flat. >> well, last quarter's earnings and revenue not very good. a lot of companies, give you ibm. sales down 5%. harley-davidson, sales down 11%. those dogs aren't going to hunt in the long term. that has to get better. the fed can do whatever they want to do right now. eventually people will focus on earnings and sales growth. if it is not there, the market will pay a penalty for that. by the way, a little news is that on september 13th was the last announcement by the fed about qe3 or qe 4, whatever number they're on. the market is no longer listening. it is down pretty decent from there. what happens if the market stops listening to the fed. i'm not so sure we're there but the market hasn't been too good sense. tracy: because there is no place to go. have to ask you about the fiscal cliff, you're pretty much assuming we're getting higher taxes, aren't you?

is any deal at this point better than no deal? >> any deal is a bad deal. tracy: yeah. >> tracy, we talked about this all the time on weekends and stuff, nothing is going to change. this is a big con game, a big shell game. taxes are going to go up and i have news for you, spending is going to go up. this talk of a trillion here and a trillion there of spending coming down, that is off of 10 trillion already accounted for in the next decade. so we're going to be in the 20s as far as deficits going forward. i think they're taunting markets. i'm hoping we don't wake up one day and markets look at what is going on here and fire right back at them. tracy: you know what? you're not wrong. that is going to happen. between that and the bond bubble bursting we have a lot to look forward to in the new year. gary kaltbaum, kaltbaum capital management. >> my pleasure, thank you. ashley: every deal is a scam, a shell game and he's right. tracy: yeah. ashley: guess what? banks are bouncing back. the third quarter proving very profitable for some of

the industry's biggest names but are we out of the woods just yet? gerri willis joins us ahead to talk about that. tracy: first as we do every day at this time of day look how oil is trading. it is basically flat. $88.82 a barrel. we'll be right back.

ashley: it is time to make money with charles payne. this hour we're looking at pet health specialists pet med express. charles, how fat is joe is the question? tracy: ah, fat joe. >> fat joe. i told tracy, i don't know if i told you about a month ago they called s at the veterinarian you have to get fat joe. he is done. but he is still kicking. tracy: that guy has nine lives. >> no joke. he is serious. so, segue out of that, to pet med by the way the stock is up. tracy: because ever fat joe and you've been taking care of fat joe? >> i'm a comercial for pet med at the same time. special one dollar dividend. go beneath the dividend which is interesting, we talked petsmart. tracy: yeah. >> the stock has been a monster. this one has struggle a little bit because the product mix. nonprescription versus prescription. i think they do better with that ii becoming a larger and larger portion of

overall revenue. 38% revenue from 35% from the year before. i think as that continues to well. i like where it is on the chart from a risk/reward review. reorders are looking fantastic. 79% of revenues reorders. so they have a strong base there. one of their problems haapens to be a tv inventory. needed cheap television inventory. wasn't there last quarter so the stock is down. let it pull back in a broader selloff but might be one to consider. ashley: using fat joe again, dogs are living longer. >> they are. ashley: people spend on fortune on pets. >> look at some of the things you can get from these guys. chronic medicines, thyroid, pan cree atic, anti-bottom ticks. used to be worms and fleas. ashley: that is old school. >> though want to do x-rays and cat scans. tracy: on fat joe? >> on fat joe. little fat joe. ashley: fat joe, i know he

has a diabetes problem. that is a dead giveaway. >> that is a small clue. i'm going to bring him in one day. you guys will love him. tracy: we have photos. we had photos of fat joe. he is sort of explosive lookiig. ashley: i got photos. >> you know what though? out of the three yorkies the most active and athletic one we have. tracy: that is amazing. maybe it is muscle. >> that's what i say by the way. see you later. ashley: thank you, charles. it is all muscle. tracy: all muscle. >> part fat. ashley: part fat. tracy: we've got to get on with this. breaking news. nicole petallides on the floor of the new york stock exxhange. you have breaking news on netflix, huh? >> really big breaking news the stock is jumping. i just took a look at the intraday chart. you can see it is taking off double digits in percentage terms. let's get to the news. netflix gets a key deal, an exclusive deal with disi in they will be able to show disney movies here. and it is pay movies, releasing from 2016.

so netflix subscribers will be able to watch new disney movies on television, tablets computers, mobile phones of the what the company said in a statement. this intraday chart shows you how explosive of a deal it really is. granted it doesn't begin to kick off until 2016. but great news for netflix. that is why you're seeing the stock up 12%. any parent trying to remember to dvd player this is unbelievable. you're talking tablet, and mobile devices you can access any of those. tracy: that actually is really cool. ashley: certainly a step in the right direction of netflix. tracy: netflix will obviously be around in 2016 if there is any doubt. nicole, see you in 15 minutes. ashley: very good. tracy: we're going inside the president's latest round of talks on the fiscal cliff. governor gary herbert of utah joins us next. ashley: we'll hear what he has to say. take a look how the dollar is moving right now against some of these foreign currencies, the euro, the pound, the canadian dollar.

mexican peso. yes, they are all moving higher today against the good ol' greenback. we'll be right back ♪ [ male announce] how could witchgrass in argentina, change engineering in dubai, aluminum producon in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understandhe connections of a complex, global onomy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with condence.

request a prospectus or summaryrpectus with investment information, risks, fees and expenses to read and consider cefully before investing. if you're a man with low testosterone, the only underarm treatment for low t. that's right, the one you apply to the underarm. axiron is not for use in women or aone younger than 18. axiron can transr to others through direct coact. women, especiay those who are who may become pregnant, and children should avoid contact where axiron is applied as unexpecd signs of puberty inhildren orhanges in body or increased nen women may occu report these signsnd symoms to your doctor if they occur. tell youdoctor aboutall mes and medications. do not use if you have prostate or breast cancer. serious side effects could include increased risk of prostate cancer; worsening prosta symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful brsts; problems breathing while sleeping; and blood clots in the ls. common side effects include skin redness irritation where applied, increased red blood cell count, headhe, diarrhea, vomiting, and increase in psa.

seyour doctor, and for a 30-day free trial, go to axiron.com.

>> 20 minutes past the hour. i'm heather nauert with your fox news minute. thh crisis is escalating in egypt as protesters break through police lines during protests at the presidential palace in cairo. reuters says president morsi left the palace following the clashes. there is some of the chaos taking place right now. estimated 50,000 demonstrators upset with a rushed constitution and a move by president morsi that grants him with absolute power. the world is watching and there will be consequences if his regime resorts to the use of chemical weapons. this after u.s. satellite surveillance shows government forces are preparing chemical weapons for use including nerve gas.

the white house is claiming it has no evidence that iran captured another american drone supporting the pentagon's claim that no american drones are missing in the middle east. this comes after iranian state tv report that is the islamic republic captured an unmanned u.s. surveillance aircraft after it entered iranian airspace. those are the headlines. back over to you, ashley. ashley: heather, thank you very much. appreciate that. president obama met with governors to talk about the fiscal cliff's impact on therapy states earlier today. republican governor gary herbert of utah was in that meeting and he joins us now. governor, thank you so much for joining us. of course i want to know immediately, what was the president's message to you, the governors? >> well he said he wanted to work with us as states. again we appreciate the fact that we were invited. states and governors have been kind of ignored in the past. in fact states have been kind of an afterthought in many policy discussions here in washington. we have something to say. we can help them make better policy.

he invited that dialogue and that discussion and promised we would have further opportunity to meet with him. >> i saw the statement. the states say they are willing to help. what exactly can you do for this process to get it moving along? >> one of the things we understand that the federal government is spending too much money. they're borrowing 40 cents of every dollar they have spent. we can help by taking less as states. we'll take less but take away the strings. give us more flexibility. if we can do that we can do more with less. help the federal government balance the budget while providing desired services to our customers. ashley: bottom line, governor, obviously comes down to democrats want to raise taxes on the richest americans while republicans say you know what? we can raise revenue by eliminating deductions. which is the best path forward in your opinion? >> raising taxes in my view is the last thing you would want to do.

clearly as you raise revenue you can do it a couple of ways by closing loopholes which is one. proposals on the table. people acknowledge maybe that is one that is a compromise point. raising tax rates is a bone of contention. growing the economy, really how you provide additional revenues to pay the bills. that ought to be a part of the equation too. both sides know there has to be some spending cuts. and also that means entitlements. we've talked in terms of what we can do with medicaid reform and things we can do with entitlements where we the states can do more with less and help them with some of their entitlement reform. raising revenue and cutting spending, clearly that is the two issues on the table. i'm hopeful that the president, the executive branch, the congress can come together. ashley: i mean is this something going on in private that gives you more hope right now something will get done before we go over the cliff? i mean what's your sense? you've met with the president. i believe you will be meeting with speaker boehner

later on this afternoon. what's yourrsense right now? >> well, i'm anxious to hear what speaker boehner and majority leader reid have to say to us also and see what congress's side of the issue is. but i believe the pressures will come to be they have got to find a solution. i'm here to tell you, failure is not an option. speaking for my own state and other states are similar, if we go over the fiscal cliff, it will have significant ramifications, particularly to the economy. i'm in a state that is actually has healthy growth going on economically right now and will have surplus money, growth money coming in to help us balance the budget in this upcoming fiscal year. if they go over the fiscal cliff we'll lose money. we'll have to cut programs. that is just not acceptable. i believe good people can come together and find compromise. compromise is not a dirty word. ashley: it is not. >> as governors we ought to help them get it to happen. ashley: best of luck. get that message out there. governor gary herbert of utah, thanks so much forring

us. >> thank you. tracy: nice to be half glass full i suppose. ashley: yeah. tracy: many investors are looking to gold as a safe haven ahead of this fiscal cliff but you have to be really careful where you are putting your money. while gold bullion has made significant gains this year, don't be surprised if your gold fund doesn't reflect that which is quite a little conundrum. sandra smith here to clear it up in today's trade. >> hey, ashley and tracy. gold is down $23 on the session. it is just below 1700. you're right, for the year still posting some nice gains of about 9% for the yellow metal. so it's been a big winner outperforming a lot of stocks in the stock market but not so much the case with gold miners. if you take a look one of the largest gold miners etf, market vectors etf it is up a little bit today but for the year it has gone down nearly 12%, something we don't usually see but these

aren't typical times. gold miners would usually reflect the higher gold prices but not so much the case here. the largest gold etf which actually buys and stores the metal, it has been tracking the price of gold. so here's the thing. a lot of analysts have been writing take a look at this fact because that means a lot of gold miners are very cheap at these levels. some of the ones, barclay's analyst points out barrick gold which happens to be in the green today, it has taken a significant decline so far in 2012. it has gone from over $50 a share to about $34 a share. it is down 25% this year. it's pe is just 10. it is very cheap. average analyst weighting overweight with a price target of over $50 a share. so very undervalued according to those looking at it. barclays saying about barrick gold. they say the gold miners are too cheaa to ignore. gold mining stocks make sense to own at these levels. tracy and ashley, one other stock being often talked

about by those analysts is newmont mining. it too has taken a significant decline this year and considered pretty cheap where gold prices are today. something to keep in mind if you're looking for something to add to your portfolio. ashley: exactly. good stuff. sandra, thank you very much. tracy: talking a lot about gold lately, huh? that is not good. ashley: no it's not. safe haven and all that. so much for a simple way to pay for the obama administration's new health care plan. the irs releasing 159 pages of new tax rules, yikes! get the bottom line from emac, liz macdonald ahead. tracy: that is her weekend reading. look at some of the winners and losers on the s&p 500 as we head out to break. nicole petallides mentioned netflix up almost 10%. first solar is a charles payne favorite. darden, the olive garden, down 10%. we'll be right back. want to try to crack it? yeah, th's theay to do it!

now we need a little bit more... male announcer ] at humana, we understand the value of quality time and personal attention. which is w we are proud to partner th health care professionals who understand the difference that quality time with ourembersan make... that's a very nice cake! ohh! [ giggle] [ male announcer humana thankthe physicians, nurses, hospitals, pharmacists and other health ofessionals who helped us achieve the highest average starating among national medicare companies... and become the first and only national medicare advantage company to achieve a 5-star rating for a medicare plan... your efforts result in e quality of ce and rvice we're able to provide... which means better health outcomes... and more quality time to share with the ones who tter most. i love u, grandma! [ male announcer ] humana.

♪

liz: it is 30 past the hour. check markets as we do every 15 minutes. nicole petallides on the floor. the market is basically flat. nicole: basically lat. what is your number one thing on your brain when you look at the market? we are always thinking about washington. i'm not thinking about washington but i think that is it. this is all about the fiscal cliff. we keep saying over and over it is boring but these guys have to get some resolution. tracy: what is the consensus of people you are speaking to on the telephone on wall street? did in come to some bipartisan agreement? >> no they don't and they're

getting angry. [talking over each other] tracy: the rates go up essentially? nicole: special dividends tell you companies and a lot of them have been down in washington recently thinking this is not going to happen. they are declaring dividends ahead of a little bit. the general consensus, market's going to stay where it they are, this is a headline driven market. the flavor of the day is going to be where we are and that is why you will not see reinvestment. this is a trader's market. nicole: a lot of stories stocks will looking at with earnings and such but the big picture -- >> you can still make monee somewhere. nicole: if you pick the stocks. [talking over each other] tracy: see you in 15 minutes. ashley: crude oil futures at $88.50 a barrel, down $0.69, a

little more than 1/2% but supportive from any further lower. tracy: considering. we have a bit of good news about the troubled banking sector believe it or not. federal deposit insurance corporation reports u.s. banks actually earned more last quarter than in any other quarter the last six years. 57% of banks reported improved earnings and a number of troubled banks fell to the lowest in three years. banks going to start lending? does that mean -- [talking over each other] >> they are lending more but you may not be happy. there is another problem with this data. 82% of the gains are due to five companies and the the big banks. there's a huge move in earnings. they're doing better and almost back but all of this is five banks, jpmorgan chase, the usual

suspects. small banks are still having problems and you say the number of bank in trouble with lower than it used to be but still 700. small banks provide, 10% of the assets, just 10% of the assets, they do 70% of lending. so we have to be worried about those banks. we already guarantee the big banks and we know they will do okay. they are not hurting. go back to sleep. you should be thinking of small banks because those of the people making loans to small business. tracy: you say they're not. >> i am not saying whether they are or not. they're in trouble and continue to be in trouble, dodd-frank regulations strangling to death and can't afford to have the kinds of systems in place the big banks have. they have lots of burdens and still in trouble and no one -- tracy: sarbanes oxley all over again. >> it is worse. tracy: watch the willis report

tonight at 6:00, 9:00 eastern on fox. we will talk about this. gerri willis. ashley: here come the obamacare rules, new irs rules of health care reform, eating up a huge amount of trees, redwood trees. tracy: a lot the happy. ashley: elizabeth macdonald, nothing is ever as simple when it comes to new rules. liz: i love when congress says we are going to pass the new rules, the new irs used to deal with it. tracy: don't kill the messenger. liz: health reform is blowing out circuit that the irs and basically printing on pneumatic tubes, earnings for the bandwidth of the irs, and health reform so right now talking about 159 new pages added to the code to handle the new obamacare taxes on dividends and so the

other issue too is a new irs form taxpayers have to fill out to comply with the new rules. this is to collect $32 billion a year, $318 billion a year, $32 billion in the year, $318 billion over ten years. that is what they're looking at but the issue is what about the burden for individuals. this is a former irs official saying yes, it will increase the burden for individuals. we have doug shoen, irs commissioner telling congress this paat summer that you write the laws, we interpret them. if you disaaree, taxpayers, or you, congress, there's always a task force and tax credits for health exchanges. what i love about this guy is congress and the ira's are wrestling with whether rental income, look at tax, under the new -- tracy: investment income. liz: day haven't even done that

yet. that is the issue too. it is not just stocks, bonds and derivatives, 159 -- tracy: that is so bad. ashley: thank you for that. that is the reality of what is going on. [talking over each other] liz: the irs -- tracy: breaking news looking at rental. liz: they don't know whether to include it. tracy: haven't read it yet. is red tape standing in the way of the housing recovery? foreclosures are bogged down in court proceedings and judge andrew napolitano is going to tell us his ruling. ashley: as we do at this time every day take a look at the ten and 30 year treasuries down a basis point on the ten year 1.61%, to 30 year, same-store,.78%. we will bb right back. can i help you?

i heard you guys can ship ground for less than the ups store. that's right. i've learned the only way to get a holiday deal is to camp out. you know we've been open all night. is this a trick to get my spo [ mae announcer ] break from the hoday stress. save on ground shipping at fedex office.

lori: i am lori rothman with your thoughts business brief. los angeles mayor announcing last hour that union and management negotiators have agreed to federal mediation in a bid to end the strike at ports in los angeles and long beach, entering an eighth day as they fight for jobs they say are threatened by technology. shares of netflix reached a multi-year catalog deal with disney. netflix, the service for first run option in animated disney films. apple expanding its itunes store to 56 countries, nearly doubling its geographic reach. russia and turkey among the additions, consumers will choose from a music library of twenty

billion songs. the itunes store available in 119 countries. that is the latest from the fox business network giving you the power to prosper.

tracy: backlog in forecasting foreclosures in many states have bring a strong recovery in the housing market. take new york. it takes three years for a home to go through foreclosure according to realty track. nearly that long in new jersey which makes me wonder why i pay my mortgage. nationwide it takes on average difference? here to sort it all out and tell me why i need to continue paying my mortgage is fox news senior judicial analyst judge andrew napolitano. this story fires me up. three years, i could save for college if i just sit in my home. judge napolitano: a lot of adverse consequences if you took the position that they filed a

notice of foreclosure and suit me which they're about to do in new jersey for for closure and i am not going to pay them. your debt would increase and your credit rating would be destroyed and any equity might have in the house would be worn away by the increased debt to. tracy: if i ever got before a judge, i would say something and the bank works with me and next thing you know i got a deal. to judge napolitano: hardship is not a defense. what is the defense is the bank didn't downsize and cross 60s and state like new jersey and new york have would you characterize as judicial foreclosure, foreclosure that must be approved by a judge after consent or trial. it is to avoid the robotstamping foreclosure that occurred in other states like florida where the bank, you know, a couple blanks here, they should have stamped their name in, submit documents to the clark and everything is filed here and the bank owns the house and the homeowner never had an

opportunity to say i never saw that, never read it, never agreed to it. that is not my signature. the judicial version of foreclosure forces the banks to be honest, to adopt every i and cross every t. it takes them three years to get their money. tracy: the states, 22 states that are judicial thought the beginning of good thing when they declared themselves. judge napolitano: they thought they were protecting the homeowner from a bank that might seize the property too quickly. just to give you an example let's say you bought a house for $100,000 and borrowed 75 your twenty-third down, you know the $75,000 but let's say that the house is worth $50,000 so you stop paying the foreclosure goes through, bank sells the house for $50,000, pays its self, you still owe the bank at 25. the difference between what you are and what the bank got back from the foreclosures 04 closure doesn't buy out everything. it is just one way the bank can get a portion of what you mow

the bank. tracy: we only have a few seconds that it is such of backlog. can the states and do their judicial status? judge napolitano: yes. they could. legislation which would change the foreclosure proceeding but you are not going to like this. that will report came to mortgages that were given after the data -- tracy: grandfathered. judge napolitano: you cannot take away this due process right from somebody that once had it. you can say in the future if the bank wants to come after you you can't get before a judge that you can't change the law for people who already borrow the money. tracy: it holds today but not in washington. judge napolitano: when you vote with your feet you can live in washington or you can live in massachusetts or live in new jersey. tracy: new york/new jersey/connecticut forget it. thank you. years -- drives me insane. ashley: a lot of college money.

direct credit. it is a quarter till. time for stocks as we do every 15 minutes. let's go to nicole petallides on the floor of the nice the casinos getting hit today. nicole: you are looking at further regulation. chinese authorities looking closely at mattel gambling, let's take a look at how wind is fairing. you see a down era for this particular stock. money transfers, they actually are looking closely at junk operators, there are people who shutter around high rollers, they're going to be monitoring how much money moves and higher regulation obviously doesn't necessarily mean good news for some of these casinos that operate in town. wind is down 3 to send and wall street journal saying police detained people from three of the biggest operators. and the new regime is in china andpeople from three of the bigt

operators. and the new regime is in china and stabbing of the regulation. tracy: it is like a vegas down there. all eyes are on the internet music service pandora whichh reports third quarter earnings after the bell today. dennis kneale tunes in now. law that. what is going on? dennis: wall street looking for torrid growth in sales when pandora reports today. profits not so much. wall street chief, pandora sailing at 6% according to $117 million. that is the good news but net income expected to drop 40% to $2 million. earnings per share could fall even more down 50%. the expectations are. pandora stock tumbled 4% last time i checked. maybe there's an upside surprise up 5% but stock down 50% since going public at $20 a share in june of last year and particularly wild ride.

it is 12% after reporting upside results last quarter. what is the problem? some big guns may take aim at pandora's market. pandora and microsoft but also there is this. pandora pays a princely sum for music rights, performance fees and has a lot more than the other services. last year they brought in $275 million in revenue and it paid out half of that much in performance fees while it lost $20 million, paying $137 million performance fees but regular radio stations don't pay any performance fees at all. they pay a small copyright fee, even cereus x em satellite pay pandora fees, now they're asking for a change and lower rp but over 100 artists and the letter of protest to pandora. they don't want it to happen and so far that bill in congress

that pandora has filed is going nowhere. tracy: no surprise. thank you very much. ashley: the president meeting with governors on the fiscal cliff, we spoke to the governor herbert earlier but as the clock ticks down for january 1st, is the president wasting time? the next guest thinks so. douglas holtz-eakin will be joining us next. tracy: look at today's winners and losers on nasdaq as we head to break. is netflix up top again, green mountain coffee doing okay as well and your losers, wind and resorts, we were just talking about those casinos. we will be right back.

ashley: president obama digging deeper on its fiscal cliff stopped earlier today saying we won't cut our way out of this deficit and it starts with raising tax rates on the wealthy but my next guest says this rhetoric could drive us right over that cliff. joining me now is douglas holtz-eakin, former director of the congressional budget office. and it -- you know your numbers, we know the fiscal cliff is going to have a huge impact if we go over it on this economy. before we get into the details are we in real danger of doing that? >> absolutely. this is an enormous heights in taxes, big cuts in spending, a hit to gdp that is 4% when we're growing and one.5, all the makings of a real problem and of fallout on consumer confidence will be severe. i think going over the cliff is unthinkable and something we should not contemplate. ashley: but the fundamental difference is the democrats say we have got to raise taxes on

the top 2%. republicans putting forward their proposal saying revenue can be sorted through these deductions. is there any give? >> there has been some givee what they put out was not their preferred budget. what they put out is something that was basically a carbon copy of what erskine bowles presented to the supercommittee. it has only one dollar and $0.75 a spending cuts for every dollar of taxes. that is a long way from where they would have started. it was intended to be a good-faith effort to raise revenue on high-income americans. to put on the table some spending they thought was appropriate, we need to control spending. everyone who looks at the numbers as a balanced plan has more spending cuts and the white house dismissed as unbalanced. that troubles me because they put out a plan that has

$1.6 trillion in taxes, which means there was nothing on the spending side. that doesn't strike me as balanced and still very far apart. ashley: does a deal get done before the deadline. i wish i could say i am sure it will but we are seeing a hard push on the political agenda, the president in particular saying my way or the highway, not the words of compromise, claiming a mandate from his election. i thinn we will have to see a change in behavior with a genuine recognition the election was a message for compromise, not those particular policies. ashley: we are out of time but thank you for being here. you have an agreement -- tracy: frustrating for people, all of us at home to stop this. we know what has to be done. come down -- she will figure oot. ashley: i would love to see

that. tracy: we will pop some champagne when the fiscal cliff is solved but sales of luxury items falling by nearly 5% in the first we three-quarters of this year as economic woes in europe and the u.s. have caused many to shy away from expensive tastes. campaignmakers attempted to offset the decline with price hikes but the industry is only forecasting growth of just over 1% in the next three years. fear not, new year's is from a corner and a lot of people by the bubbly but there's a replacement sector going on with people drinking the poor man's champagne, a lot of whining drinkers out there. ashley: we are doing our best to rectify the situation. liz claman will be taking us through the last hour of trading. she has the guy who used to run $110 billion pension fund, stephen leblanc is in the private sector. find out why he is placing big

bets on commercial real-estate in texas. count down to the closing bell is next. [ male announcer ] this is steve. he loves risk. but whether he's climbg everest, scuba diving the great barrier reef with sharks or jumping into the m marke he goes with people he trusts, which is why he trades with a compy that doesn't nickel and dime him with hidden fee so he can worry about other things, le what the market is doing and being ready no matter what happens, which isn't rocket scien. it's just common sense, from td ameritrade. you know how painful heartburn can be. for fast, long lasting lief, use doctor recommended gaviscon®. only gaviscon® forms a protective barrier tt helps block stomachcid from splashing up- relievinghe pain quickly. try fas long lastg gaviscon®.

[ engine revs ] ♪ ♪ [ le announcer ] the mercedes-benz winter event is back, with the perfect vehicle that's just right for you, o matter which list yore on. [ santa ] ho, ho, ho, ho! [ male announcer ] lease a 2013 250 for $349 a month at your local mercedes-benz dealer.